PARIS — Nestlé has entered into an agreement with KKR to acquire the core brands of The Bountiful Company for $5.75 billion.
The deal includes the Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride brands, plus the group’s private-label business in the U.S.
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Earlier this week, it was announced that Nestlé was in talks to acquired all or part of The Bountiful Company, which is the leading pure player in the global nutrition and supplements category.
As the fine line between beauty and wellness continues to blur, companies are increasingly looking to acquire or invest in brands that link the two.
Vitamins and supplements have never been more relevant than during the coronavirus pandemic, when sales of immune-boosting, stress-relieving and general wellness-promoting ingestibles surged in many markets, such as the U.S.
The Carlyle Group will also sell its minority position in Bountiful, which it has been invested in since 2010.
The sale price of The Bountiful Company’s brands is on a cash-free, debt-free basis and represents a multiple of 3.1-times net sales and 16-times earnings before interest, taxes, depreciation and amortization.
The acquired brands’ net sales were $1.87 billion in the 12 months ending March 31, with an EBITDA of 18.3 percent.
The Bountiful Company was founded in 1971 and is based in Ronkonkoma, N.Y. It sells vitamins, minerals, herbal and other specialty supplements.
The brands acquired from The Bountiful Company will be integrated into the Nestlé Health Science division.
The deal is expected to close in the second half of this year.
“Vitamins and supplements are a key part of our business and have contributed to strong growth acceleration,” Nestlé Health Science’s chief executive officer Greg Behar said in a statement. “This acquisition complements our existing health and nutrition portfolio in terms of brands and channels. It will establish Nestlé Health Science as the industry leader in mass retail, specialty retail, e-commerce and direct-to-consumer in the U.S., while offering significant opportunities for geographic growth.”
Swiss giant Nestlé is no stranger to the supplements space. In August 2019, the company acquired Persona, a personalized nutritional supplement business, for instance.
Other multinationals are delving in the segment, too, such as Unilever. Earlier this week, the company said it has inked an agreement to acquire Onnit, an Austin, Texas-based holistic wellness and lifestyle company founded in 2010. The brand’s supplements are billed to improve cognitive function, mood and relaxation, gut health and immunity support.
The global dietary supplements market was valued at $140.3 billion in 2020, according to Grand View Research, which forecasts it to increase at a compound annual growth rate of 8.6 percent between 2021 and 2028.
“The increasing consumer awareness regarding personal health and well-being is expected to be a key factor in driving the market for dietary supplements over the forecast period,” the market research company said.
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